OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX Financial Review Revenue EBIT FY2023 S$’000 FY2022 S$’000 Change % FY2023 S$’000 FY2022 S$’000 Change % Singapore 133,841 95,433 40.2 193,483 81,964 >100 China 32,551 46,222 (29.6) 8,958 53,618 (83.3) Management Businesses 48,896 35,919 36.1 27,905 21,550 29.5 Corporate and Others 354 231 53.2 35,793 5,475 >100 Eliminations (14,714) (16,543) (11.1) (15,371) (24,093) (36.2) 200,928 161,262 24.6 250,768 138,514 81.0 Perennial Holdings’ revenue for FY2023 was S$200.9 million or 24.6% higher than the S$161.3 million recorded in FY2022. The higher revenue in FY2023 was mainly due to the improved sales from Eden Residences Capitol and higher management fee earned from The Skywaters and Perennial’s healthcare joint venture company, Perennial HC Holdings Pte Ltd (“Perennial HC Holdings”) due to project progress in Tianjin and Kunming. SINGAPORE In FY2023, Singapore assets contributed a revenue of S$133.8 million or 66.7% of total revenue. The revenue from Singapore assets increased mainly due to the higher contribution from the sales of Eden Residences Capitol. The deconsolidation of CHIJMES’ revenue in FY2023 was offset by the revenue contribution from Perennial Business City. On top of the higher revenue, Singapore assets’ Earnings Before Interest and Tax (“EBIT”) at S$193.5 million was higher compared to FY2022 due to fair value gain recognised for various assets and higher contribution from Forett at Bukit Timah due to the project’s progress. CHINA China assets contributed to approximately 16.2% of Perennial Holdings’ revenue. Revenue from our China operations decreased by S$13.6 million to S$32.6 million in FY2023 (FY2022: S$46.2 million), mainly due to lower occupancy and rental rates, as well as the weakening of Chinese Renminbi (“RMB”) against the Singapore Dollar (“SGD”). EBIT from China assets was lower by S$44.7 million largely due to the lower fair value gains and weakening of RMB. Fair value gains at the EBIT level totalled S$1.6 million in FY2023 as compared to S$30.4 million in FY2022. Although the current contributions from the healthcare business remain insignificant, a positive growth trajectory is anticipated, driven by the expansion of Perennial Holdings’ healthcare hubs, general hospitals, rehabilitation hospitals, specialist hospitals, nursing homes/ hospitals, eldercare homes and assisted living apartments. MANAGEMENT BUSINESSES Revenue for Perennial Holdings’ fee-based management business has increased by S$13.0 million to S$48.9 million in FY2023 (FY2022: S$35.9 million). The increase was mainly due to the higher management fee from Perennial HC Holdings and The Skywaters. EBIT in management business increased by S$6.4 million to S$27.9 million (FY2022: S$21.5 million) mainly due to contribution from earnings in managing The Skywaters, Perennial Tianjin South High Speed Railway (“HSR”) International Healthcare and Business City and Perennial Kunming South HSR International Healthcare and Business City. PATMI For the year under review, Perennial Holdings recorded a Profit After Tax and Minority Interest (“PATMI”) of S$29.1 million. The higher PATMI in FY2023 as compared to FY2022 (FY2022: S$9.1 million) was mainly due to the improved sales of Eden Residences Capitol and higher fair value gains from various assets. These were offset by higher finance costs recorded in FY2023. TOTAL ASSETS Total assets as at 31 December 2023 stood at S$8.3 billion, S$14.8 million or 0.18% higher than 31 December 2022, mainly due to fair value gain recognised for various assets, offset by lower translation of asset value due to depreciation of RMB. China and Singapore remain the Company’s core markets, with assets in these two countries accounting for approximately 74.1% and 24.5% of total assets, respectively. As at 31 December 2023, Perennial Holdings’ investment properties held 41 ANNUAL REPORT 2023
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